Introduction to Accounting MCQ for Class 11 Accountancy Chapter 1 Ans

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MCQ Questions for Class 11 Accountancy with Answers: Financial Accounting

Q1. Which is the last step of accounting as a process of information?

(i) Recording of data in the books of accounts
(ii) Preparation of summaries in the form of financial statements
(iii) Communication of information
(iv) Analysis and interpretation of information

(iii) Communication of information

Q2. Goodwill account is a

(i) Personal Account.
(ii) Real Account.
(iii) Nominal Account.
(iv) None of these.

(ii) Real Account.

Q3. Internal users of accounting information are :

(i) Creditors
(ii) Potential investors
(iii) Managers
(iv) Researchers

(iii) Managers

Q4. Cash, goods or assets invested by the proprietor in the business for earning profit is called-

(i) Profit
(ii) Capital
(iii) Fixed assets
(iv) None of these.

(ii) Capital

Q5. Use of common unit of measurement and common format of reporting promotes

(i) Comparability
(ii) Understandability
(iii) Relevance
(iv) Reliability

(i) Comparability

Q6. Basic function of financial accounting is to

(i) record all business transactions.
(ii) interpret financial data.
(iii) assist the management.
(iv) None of these.

(i) record all business transactions.

Q7. The Pioneer of Accounting is:

(i) Arthur Field House
(ii) Gitman
(iii) William Pickles
(iv) Lucas Pacioli

(iv) Lucas Pacioli

Q8. Book – keeping is-

(i) An art
(ii) A science
(iii) An art and science both
(iv) None of these.

(iii) An art and science both

Q9. Which of the following is not a business transaction?

(i) Bought furniture of Rs. 10,000 for business
(ii) Paid for salaries of employees Rs. 5,000
(iii) Paid sons fees from her personal bank account Rs. 20,000
(iv) Paid sons fees from the business Rs. 2,000

(iii) Paid sons fees from her personal bank account Rs. 20,000

Q10. Which of the following accounts has a credit balance?

(i) Carriage Inward
(ii) Discount Received
(iii) Carriage Outward
(iv) Discount Allowed

(ii) Discount Received

Q11. Management accounting provides valuable services to management in performing

(i) All management functions
(ii) Controlling functions
(iii) Coordinating management functions
(iv) None of these

(i) All management functions

Q12. The art of recording all business transactions in a systematic manner in a set of books is called-

(i) Accounting
(ii) Book – keeping
(iii) Ledger
(iv) None of these.

(ii) Book – keeping

Q13. Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?

(i) Understandability
(ii) Relevance
(iii) Comparability
(iv) Reliability

(i) Understandability

Q14. Which of the following will not be recorded in the books of account?

(i) Sales of goods
(ii) Payment of salary
(iii) Quality of staff
(iv) Purchase of Goods

(iii) Quality of staff

Q15. Discounts received are

(i) Buyer of goods granted discount by seller
(ii) Deducted when we receive cash
(iii) Given by us when we sell goods on credit
(iv) None of these

(i) Buyer of goods granted discount by seller

Q16. The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –

(i) Book – keeping
(ii)Accounting
(iii) Journalizing
(iv) None of these.

(ii) Accounting

Q17. Which of the following limitations of accounting states that accounts may be manipulated to conceal vital facts :

(i) Accounting is not fully exact
(ii) Accounting may lead to window dressing
(iii) Accounting ignores price level changes
(iv) Accounting ignores qualitative elements

(ii) Accounting may lead to window dressing

Q18. The unsold merchandise of business on particular day is called

(i) Purchase Return
(ii) Stock / Inventory
(iii) Bad Debts
(iv) Sales Return

(ii) Stock / Inventory

Q19. Drawings Account is a

(i) Personal Account.
(ii) Real Account.
(iii) Nominal Account.
(iv) None of these.

(i) Personal Account

Q20. Accounting is the language of

(i) Government
(ii) Commerce
(iii) Trade
(iv) Business

(iv) Business

Q21. Out of the following assets, which one is not an intangible asset?

(i) Machinery
(ii) Patents
(iii) Goodwill
(iv) Trade Mark

(i) Machinery

Q22. Use of common unit of measurement and common format of reporting promotes